ECO 302 Week 7 Quiz – Strayer Click on The Link Below to Purchae !"#ra$e$ Coure %aterial http://budapp.net/ECO-302-Week-7-Quiz-Strayer-354.htCha&ter '0 an$ '' T()E*+!LSE !. "i #h p$%e re d $ney i& '$$dity $ney (i ke #$(d and & i()er. 2. *+ h$u&eh$(d& re du'e $ney ba( an'e&, t he n thei r tr an&a't i$n& ' $&t& #$ up. 3. *+ the $ney &upp(y #r $%& + a&te r t han $ney dea nd, t hen the pr i'e (e)e( ri&e&. 4. *+ the i nt er e&t rat e in 'r ea &e&, the n th e re a( d e and +$r $ney a (&$ in'rea&e&. 5. he neutr a(it y $+ $ney ean& that $ne ti e 'han#e & in the $ney &upp(y d$ n$t a++e't rea( )ariab(e&. . ! in'( ude& a br$ader array $+ de p$&i t a '' $unt& tha n 2 d$e&. 7. *n the ar r$ $de(, $ney and ba rt er 'an b$t h be u&ed +$r e1'han#e&. . *n the ar r$ $de(, h$u&eh$(d& h$(d $ney a& a ($n#-ter &t$re $+ )a(ue. . *+ the p ri 'e (e)e( d$ub(e&, then a h$u&eh$( d& n$ina( dea nd + $r $ney a(&$ d$ub(e&.
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2. C$$dity $ney i& $ney that ha& )a(ue be'au&e:a. $+ the intrin&i' )a(ue $+ the '$$dity. '. the #$)ernent &ay& &$.
b. it i& (e#a( tender. d. a(( $+ the ab$)e.
3. *+ a per&$n h$(d& $ne d$((ar and d$e& n$t ($&e it, then a& ($n# a& the per&$n h$(d& that d$((ar they %i(( ha)e:a. the '$$dity )a(ue $+ the d$((ar. '. an intere&t bearin# a&&et.
b. t$ta( 'urren'y in 'ir'u(ati$n p(u& dep$&it$ry in&tituti$n& dep$&it& at the 6edera(e&er)e. d. #$)ernent b$nd& he(d by the pub(i' and dep$&it$ryin&tituti$n&.
25. he deand +$r $ney i&:a. p$&iti)e(y re(ated t$ the pri'e (e)e(. '. p$&iti)e(y re(ated t$ rea( ;<.
b. ne#ati)e(y re(ated t$ the intere&t rate. d. a(( $+ the ab$)e.
2. When the &upp(y $+ $ney in'rea&e&, thena. the pri'e (e)e( ri&e&. '. $ney deand in'rea&e&.
b. the pri'e (e)e( +a((&. d. $ney deand de'rea&e&.
27. When the deand $+ $ney in'rea&e&, then
a. the pri'e (e)e( ri&e&. '. the $ney &upp(y in'rea&e&. b. the pri'e (e)e( +a((&. d. the $ney &upp(y de'rea&e&.
6i#ure !0.!
2. *n 6i#ure !0.!, i+ $ney deand de'rea&e& then:a. the eui(ibriu pri'e (e)e( ri&e&. '. the $ney &upp(y ri&e&.
b. the eui(ibriu pri'e& (e)e( +a((&. d. the $ney &upp(y +a((&.
2. *n 6i#ure !0.!, i+ the $ney &upp(y de'rea&e& then:a. the eui(ibriu pri'e (e)e( ri&e&. '. $ney deand in'rea&e&.
b. the eui(ibriu pri'e (e)e( +a((&. d. $ney deand de'rea&e&.
30. *n 6i#ure !0.! i+ the intere&t rate, i, %ere t$ in'rea&e, thena. $ney deand de'rea&e& and the pri'e (e)e( in'rea&e&. '. the $ney&upp(y and the pri'e (e)e( %$u(d in'rea&e.
b. $ney deand in'rea&e& and the pri'e (e)e( de'rea&e&. d. the $ney&upp(y and the pri'e (e)e( %$u(d de'rea&e.
44. *+ p$(i'y aker& tar#et a &pe'i+i' pri'e (e)e(, then:a. the $ney &upp(y be'$e& e1$#en$u& in the $de(.'. the $ney &upp(y
be'$e& end$#en$u& in the $de(. b. the $ney &upp(y be'$e& predeterined in the $de(. d. the $ney&upp(y be'$e& neutra( in the $de(.
45. *n 9S data +r$ !54 t$ 200, the pri'e (e)e( i&:a. pr$'y'(i'a( a& %e %$u(d e1pe't i+ the $netary auth$rity d$e& n$t )ary the$ney %ith the bu&ine&& 'y'(e. '. '$unter'y'(i'a( a& %e %$u(d e1pe't i+ the$netary auth$rity d$e& n$t )ary the $ney &upp(y %ith the bu&ine&& 'y'(e.
b. pr$'y'(i'a( a& %e %$u(d e1pe't i+ the $netary auth$rity )arie& the $ney&upp(y %ith the bu&ine&& 'y'(e. d. '$unter'y'(i'a( a& %e %$u(d e1pe't i+ the$netary auth$rity )arie& the $ney &upp(y %ith the bu&ine&& 'y'(e.
4. ea( $ney deand i&:a. >?=, i@.'. < A >?=, i@.
b. eua( t$ the $ney &upp(y. d. a(( $+ the ab$)e.
47. $ney deand and the $ney &upp(y are br$u#ht int$ eui(ibriu by:a. rea( ;< adBu&tin#. '. the intere&t rate adBu&tin#.
b. the pri'e (e)e( adBu&tin#. d. the rea( %a#e rate adBu&tin#.
4. <ri'e (e)e( tar#etin# ip(ie& that the $netary auth$rity:a. 'han#e& the $ney &upp(y t$ at'h $)eent& in $ney deand. '.
'han#e& $ney deand and $ney &upp(y t$ at'h $)eent& in the pri'e
(e)e(. b. 'han#e& $ney deand t$ at'h $)eent& in the $ney &upp(y. d.'han#e& $ney deand t$ at'h $)eent& in the pri'e (e)e(.
4. he neutra(ity $+ $ney ip(ie&:a. $ne tie 'han#e& in rea( )ariab(e& d$ n$t a++e't $ney deand. '. $netie 'han#e& in n$ina( )ariab(e& d$ n$t a++e't $ney deand.
b. $ne tie 'han#e& in the $ney &upp(y d$ n$t a++e't rea( )ariab(e&. d. $ne
tie 'han#e& in the $ney &upp(y d$ n$t a++e't n$ina( )ariab(e&.
b$nd& a& &ub&titute& +$r $ney. '. the #$)ernent reuire& that ta1e& be paid u&in# the +iat $ney. b. the #$)ernent de'(are& the $ney t$ be (e#a( tender. d. a(( $+ theab$)e.
53. he $netary ba&e d$e& n$t in'(udea. t$ta( 'urren'y in 'ir'u(ati$n. '. bank dep$&it& at the 6edera( e&er)e.
b. 'he'kab(e dep$&it&. d. a(( $+ the ab$)e.
54. Che'kab(e dep$&it& are
a. dep$&it& at +inan'ia( in&tituti$n& that 'an be %ithdra%n $n(y a+ter payin# a pena(ty. '. dep$&it& at +inan'ia( in&tituti$n& that 'an be %ithdra%n by%ritin# a 'he'k.
b. &a)in#& dep$&it& at +inan'ia( in&tituti$n& that 'an be %ithdra%n by tran&+er t$an$ther a''$unt. d. dep$&it& $n %hi'h the bank 'he'k& the dep$&it &(ip'are+u((y.
55. *+ 8(i'ia tran&+er& D!00 +r$ her &a)in#& dep$&it a''$unt t$ her
'he'kab(e dep$&it a''$unt, then !a. in'rea&e& and 2 &tay& the &ae. '. in'rea&e& and 2 de'rea&e&.
7. "$u&eh$(d& %ith rati$na( e1pe'tati$n& ha)e n$ err$r& in their predi'ti$n&.
. E1pe'ted and a'tua( in+(ati$n are eua( in a $de( %ith rati$na(e1pe'tati$n&.
. ;e+(ati$n $''ur& %hen the in+(ati$n rate &($%& d$%n, but reain& p$&iti)e.
!0. ;ata &h$% a &tr$n# ne#ati)e re(ati$n&hip bet%een the in+(atin rate andthe #r$%th rate $+ n$ina( 'urren'y.
%)LT,PLE C-O,CE
!. he a'tua( in+(ati$n rate i&:a. the 'han#e in the pri'e (e)e( di)ided by the $ri#ina( pri'e (e)e(. '. the$ri#ina( pri'e (e)e( di)ided by the ne% pri'e (e)e(.
b. he $ri#ina( pri'e (e)e( di)ided the 'han#e in pri'e (e)e(. d. the ne% pri'e (e)e( di)ided by the $ri#ina( pri'e (e)e(.
2. *+ the pri'e (e)e( (a&t year %a& !!0 and thi& year i& !!, then thein+(ati$n rate bet%een (a&t peri$d and thi& peri$d %a&:
a. 7.3F. '. F b. 7F. d. .F.
3. *+ the pri'e (e)e( (a&t year %a& !35 and thi& year i& !42, then thein+(ati$n rate bet%een (a&t peri$d and thi& peri$d %a&:a. 4.F. '. 5.!F
4. *+ the pri'e (e)e( (a&t year %a& !0 and thi& year i& !02, then thein+(ati$n rate bet%een (a&t peri$d and thi& peri$d %a&:a. -3.F '. 3.F
b. 4F. d. -3.F.
5. he une1pe'ted in+(ati$n rate i&:a. the e1pe'ted in+(ati$n rate (e&& the a'tua( in+(ati$n rate. '. the a'tua(in+(ati$n rate (e&& the e1pe'ted in+(ati$n rate.
b. the e1pe'ted in+(ati$n rate di)ided by the a'tua( in+(ati$n rate. d. thea'tua( in+(ati$n rate di)ided by the e1pe'ted in+(ati$n rate.
. *+ the e1pe'ted in+(ati$n rate i& 5F and the a'tua( in+(ati$n rate i& 4F,then the une1pe'ted in+(ati$n rate i&:a. !F. '. -!F.
b. F. d. !.25F.
7. *+ the e1pe'ted in+(ati$n rate i& 3F and the a'tua( in+(ati$n rate i& 5F,then the une1pe'ted in+(ati$n rate i&:a. 2F. '. -2F.
b. F. d. !.7F.
. *+ the e1pe'ted in+(ati$n rate i& 5F and the une1pe'ted in+(ati$n rate i&4F, then the a'tua( in+(ati$n rate i&:a. !F. '. -!F.
b. F. d. !.25F.
. *+ the e1pe'ted in+(ati$n rate i& 3F and the une1pe'ted in+(ati$n rate i&-2F, then the a'tua( in+(ati$n rate i&:a. 2F. '. -2F.
22. *+ the intere&t rate i& F and the in+(ati$n rate i& 2F, then the rea( rate$+ return $n $ney i&:a. 2F. '. -2F
b. 4F d. zer$.
23. *n the arket '(earin# $de( $ney #r$%th i& $de(ed a&:a. rand$. '. )ia the pur'ha&e $+ b$nd&.
b. (up-&u tran&+er&. d. a(( $+ the ab$)e.
24. >up &u tran&+er& +$r $ney #r$%th ip(ie&:
a. %e need t$ ana(yze h$% tran&+er a++e't& ;<. '. %e need t$ana(yze h$% tran&+er& a++e't 'apita(.
b. %e d$ n$t ha)e t$ ana(yze h$% h$u&eh$(d& adBu&t their beha)i$r t$ attra'ttran&+er&. d. %e need t$ $de( h$% h$u&eh$(d& adBu&t their beha)i$r t$attra't tran&+er&.
25. he e1pe'ted rate $+ in+(ati$n i&:a. the rea( rate $+ intere&t (e&& the n$ina( rate $+ intere&t. '. then$ina( rate $+ intere&t p(u& the rea( rate $+ intere&t.
b. the n$ina( intere&t rate $n n$ina( b$nd& (e&& the intere&t rate $n inde1ed b$nd&. d. the intere&t rate $n inde1ed b$nd& (e&& the n$ina( intere&t rate $nn$ina( b$nd&.
2. 8n in'rea&e in the $ney #r$%th rate in the arket '(earin# $de('au&e&:
a. an in'rea&e in the n$ina( intere&t rate. '. an in'rea&e in the pri'e(e)e(. b. a de'rea&e in $ney deand. d. a(( $+ the ab$)e.
27. 8n in'rea&e in the $ney #r$%th rate in the arket '(earin# $de('au&e&:a. an in'rea&e in the n$ina( intere&t rate. '. a de'rea&e in the pri'e(e)e(.
b. an in'rea&e in $ney deand. d. a(( $+ the ab$)e.
2. 8n in'rea&e in the $ney #r$%th rate in the arket '(earin# $de('au&e&:
a. a de'rea&e in the n$ina( intere&t rate. '. an in'rea&e in'$n&upti$n.
b. a de'rea&e in $ney deand. d. a(( $+ the ab$)e.
2. 8n in'rea&e in the $ney #r$%th rate in the arket '(earin# $de('au&e&:a. a de'rea&e in the n$ina( intere&t rate. '. an in'rea&e in the pri'e(e)e(.
b. an in'rea&e in '$n&upti$n. d. a(( $+ the ab$)e.
30. 8n in'rea&e in the $ney #r$%th rate in the arket '(earin# $de('au&e&:a. an in'rea&e in the n$ina( intere&t rate. '. an in'rea&e in the in+(ati$nrate.
b. a de'rea&e in $ney deand. d. a(( $+ the ab$)e.
3!. 8n in'rea&e in the $ney #r$%th rate in the arket '(earin# $de('au&e&:a. a de'rea&e in the n$ina( intere&t rate. '. an in'rea&e in the in+(ati$nrate.
b. an in'rea&e in $ney deand. d. a(( $+ the ab$)e.
32. he #r$%th rate $+ rea( $ney ba(an'e& i&:a. the #r$%th rate $+ n$ina( $ney (e&& the in+(ati$n rate. '. the #r$%thrate $+ n$ina( $ney p(u& the in+(ati$n rate.
b. the #r$%th rate $+ n$ina( $ney di)ided by the in+(ati$n rate. d. thein+(ati$n rate di)ided by the #r$%th rate $+ n$ina( $ney.
33. When the rate $+ #r$%th rate $+ $ney i& '$n&tant:
a. the in+(ati$n rate eua(& the #r$%th rate $+ $ney. '. rea( $ney ba(an'e are +i1ed $)er tie. b. the n$ina( intere&t rate i& the rea( rate $+ intere&t p(u& the #r$%th rate $+$ney.d. a(( $+ the ab$)e.
34. When the rate $+ #r$%th rate $+ $ney i& '$n&tant:a. the in+(ati$n rate eua(& the #r$%th rate $+ $ney. '. rea( $ney
ba(an'e are de'(inin#. b. the n$ina( intere&t rate ri&e&. d. a(( $+ the ab$)e.
35. When the rate $+ #r$%th rate $+ $ney i& '$n&tant:a. the in+(ati$n rate i& #r$%in#. '. rea( $ney ba(an'e are de'(inin#.
b. the n$ina( intere&t rate i& the rea( rate $+ intere&t p(u& the #r$%th rate $+$ney.d. a(( $+ the ab$)e.
3. When the rate $+ #r$%th rate $+ $ney i& '$n&tant:a. the in+(ati$n rate i& #r$%in#. '. rea( $ney ba(an'e are '$n&tant $)ertie.
b. the n$ina( intere&t rate i& de'(inin#. d. a(( $+ the ab$)e.
b. the $ney #r$%th rate tie& rea( $ney ba(an'e&. d. the $ney #r$%thrate tie& n$ina( $ney ba(an'e&.
3. *+ the in+(ati$n rate i& 3F and the n$ina( intere&t rate i& 5F and the$ney #r$%th rate in'rea&e& t$ 5F, then %e %$u(d e1pe't the n$ina( intere&t rate t$
3. *+ the in+(ati$n rate i& 3F and the n$ina( intere&t rate i& 5F and the$ney #r$%th rate in'rea&e& t$ 5F, then %e %$u(d e1pe't the in+(ati$n rate t$ be:a. !0F. '. 5F.
b. 7F. d. 2F.
40. *+ the in+(ati$n rate i& 3F and the n$ina( intere&t rate i& 5F and the$ney #r$%th rate in'rea&e& t$ 5F, then %e %$u(d e1pe't rea( $ney ba(an'e& t$:a. +a((. '. reain un'han#ed.
b. in'rea&e. d. t$ +(u'tuate.
4!. *+ the in+(ati$n rate i& 2F and the n$ina( intere&t rate i& 4F and the$ney #r$%th rate in'rea&e& t$ 3F, then %e %$u(d e1pe't the n$ina( intere&t rate t$
be:a. F. '. 5F.
b. zer$. d. 2F.
42. *+ the in+(ati$n rate i& 2F and the n$ina( intere&t rate i& 4F and the$ney #r$%th rate in'rea&e& t$ 5F, then %e %$u(d e1pe't the in+(ati$n rate t$ be:a. F. '. 5F.
b. 7F. d. 2F.
43. 8 de'rea&e in the $ney #r$%th rate in the arket '(earin# $de('au&e&:a. a de'rea&e in the n$ina( intere&t rate. '. a de'rea&e in the pri'e(e)e(.
b. an in'rea&e in $ney deand. d. a(( $+ the ab$)e.
44. 8 de'rea&e in the $ney #r$%th rate in the arket '(earin# $de('au&e&:a. a de'rea&e in the n$ina( intere&t rate. '. an in'rea&e in the pri'e(e)e(.
45. 8 de'rea&e in the $ney #r$%th rate in the arket '(earin# $de('au&e&:a. an in'rea&e in the n$ina( intere&t rate. '. an in'rea&e in the pri'e(e)e(.
b. an in'rea&e in $ney deand. d. a(( $+ the ab$)e.
4. 8 de'rea&e in the $ney #r$%th rate in the arket '(earin# $de('au&e&:a. an in'rea&e in the n$ina( intere&t rate. '. a de'rea&e in the pri'e(e)e(.
b. a de'rea&e in $ney deand. d. a(( $+ the ab$)e.
47. 8 de'rea&e in the $ney #r$%th rate in the arket '(earin# $de('au&e&:a. a de'rea&e in the n$ina( intere&t rate. '. a de'rea&e in the in+(ati$nrate.
b. an in'rea&e in $ney deand. d. a(( $+ the ab$)e.
4. 8 de'rea&e in the $ney #r$%th rate in the arket '(earin# $de('au&e&:a. an in'rea&e in the n$ina( intere&t rate. '. an in'rea&e in the in+(ati$nrate.
b. a de'rea&e in $ney deand. d. a(( $+ the ab$)e.
4. *+ the in+(ati$n rate i& 3F and the n$ina( intere&t rate i& 5F and the$ney #r$%th rate de'rea&e& t$ 2F, then %e %$u(d e1pe't the in+(ati$n rate t$ be:a. F. '. 5F.
b. 7F. d. 2F.
50. *+ the in+(ati$n rate i& 3F and the n$ina( intere&t rate i& 5F and the$ney #r$%th rate in'rea&e& t$ 2F, then %e %$u(d e1pe't the n$ina( intere&t rate t$
57. *+ the in+(ati$n rate bet%een (a&t year and thi& year i& -5F, and the pri'e(e)e( (a&t year %a& !25, then the pri'e (e)e( thi& year i&a. !00.00. '. !20.00.
their predi'ti$n&. b. ha)e n$ err$r& in their predi'ti$n&. d. ha)e err$r& in their predi'ti$n&.
5. *+ the n$ina( intere&t rate i& 7F and the e1pe'ted in+(ati$n rate i& 4F,then thea. e1pe'ted rea( intere&t rate i& 3F. '. a'tua( n$ina( intere&t rate i& 3F.
b. a'tua( rea( intere&t rate i& 3F. d. e1pe'ted n$ina( intere&t rate i& 4F.
0. he >i)in#&t$n &ur)eya. a&k& ab$ut 500 rand$(y-'h$&en h$u&eh$(d& +$r their +$re'a&t& $+ the C<*. '.
u&e& pri'e& $n inde1ed b$nd& t$ 'a('u(ate in+(ati$n e1pe'tati$n&. b. a&k& ab$ut 50 e'$n$i&t& +$r their +$re'a&t& $+ the C<*. d. u&e& therea( intere&t rate t$ 'a('u(ate e&tiate& $+ the n$ina( intere&t rate.
!. *+ the intere&t rate $n a re#u(ar rea&ury b$nd i& F and the intere&trate $n an inde1ed b$nd i& 3F, then thea. rea( intere&t rate i& 5F. '. e1pe'ted in+(ati$n rate i& 5F.
b. rea( intere&t rate i& F. d. e1pe'ted in+(ati$n rate i& F.
2. *+ the intere&t rate $n a re#u(ar rea&ury b$nd i& 7F and the intere&t
rate $n an inde1ed b$nd i& 3F, then thea. e1pe'ted in+(ati$n rate i& !0F. '. e1pe'ted in+(ati$n rate i& 5F.